Cloud computing and other distributed computing systems allow resource providers to offer computing resources for use by others over a network. For example, a resource provider may host a web-based application for a business, and enable use of the web-based application over the Internet. Furthermore, some companies have organizational distributed computing systems in which employees or departments may be able to request and use computing resources of the distributed computing system.
Cloud computing resources are often sold on a pay-as-you-go model, but acquired by the resource provider as a long-term, depreciating asset. This model subjects the resource provider to risks associated with capacity planning. In some instances, resource providers mitigate the capacity planning risks by obtaining long term, inflexible resource commitments from resource users.